Fiat Chrysler Automobiles (FCA) announced yesterday that the company was borrowing $3.8 billion for a one-year term that can be extended for an additional six months. This comes in addition to existing credit facilities of $8.4 billion the company already has. The news comes at a time when other Detroit automakers are doing similar measures due to shut down manufacturing plants and losing revenue as demand slumps as the COVID-19 (or Coronavirus) crisis continues.
With most of FCA’s manufacturing shut down around the globe, Italian investment firm Exor (which controls FCA), said earlier this week that the temporary closures might continue and increase pending on how COVID-19 crisis continues. FCA said the credit facility would be available “for general corporate purposes and for working capital needs” of the company and it is structured to support access to capital markets.
Earlier this week, General Motors (GM) announced it was borrowing $16 billion in credit, while Ford Motor Company, also borrowed $15.4 billion from two credit facilities to help keep the companies afloat during the current economic times.
Ford Motor Company, also announced that the company wants to return to production as early as April 6th, depending on the conditions of the outbreak. FCA said it will continue to have its Auburn Hills Headquarters, its manufacturing plants across the United States and Canada, as well as construction projects closed until April 14th.